Teva Sheds Assets Worth $2.48 Billion
Israeli generics giant Teva has completed its exit from the women’s health sector. On Sept. 18 it unloaded its contraception, fertility, menopause and osteoporosis products to CVC Capital Partners Fund VI for $703 million. Simultaneously, it sold its emergency contraception brands to Foundation Consumer Healthcare for $675 million.
Both of the deals are expected to close by the end of this year, and the embattled drugmaker plans to use the intake to pay down debt. The first group of products has annual sales revenue of $258 million, while the second has revenues of $140 million.
A week earlier, Teva sold its intrauterine copper contraceptive Paragard to CooperSurgical for $1.1 billion. Altogether, it shed business worth $2.48 billion acquired from Germany’s Merck KGaA in 2010 in the space of a week as it pays the price for its overly expensive acquisition of Allergan's generics activities for $40.5 billion in 2015.
The generics business has suffered from negative pricing dynamics, especially in the women’s health field, along with various other challenges, analysts said. The Israeli firm is in the process of sloughing off roughly 7,000 jobs as its new CEO Kåre Schultz takes over the role of chief executive.